There will soon be a period of inflation as the effects of the fluctuating value of sterling are felt by business insurance holders, an expert asserts.
Mel Kenny, Radcliffe and Newlands' senior independent financial advisor, claims the instability in the exchange rates are raising production costs, which may impact on manufacturing insurance premiums.
He states this will counter the current deflationary trend and lead to a short period of price spikes, before the pattern of cost decreases will re-emerge.
Calling on the Bank of England to separate financial service providers into good and bad banks, isolating poor debt, he says this will lead to additional security for those with business insurance.
Mr Kenny states: "Having got rid of the toxic debt, the good banks can then lend based on a strong balance sheet."
Recent Consumer Price Index projections by the Bank show an uneven path of inflation in the near-term, leading to additional instability for manufacturing insurance holders.
